Shaw Walters says ElizaOS token is effectively dead as foundation dissolves

Shaw Walters said the ELIZAOS token is finished and the foundation behind it is closing after transferring its remaining treasury and available funds to settle litigation brought by holders represented by Burwick Law. Walters wrote that there will be no further foundation support, buybacks or supply measures, said he no longer holds the token, and said he plans to keep building ElizaOS software without letting another token become tied to the project. The settlement follows a proposed class action filed on April 16, 2026 in the U.S. District Court for the Southern District of New York, captioned Doe v. Walters, on behalf of buyers of ai16z on Solana from Oct. 24, 2024. Burwick Law said the complaint names nine defendants, including Walters, Eliza Labs, the AI16Z DAO and DAOs.fun, and alleges deceptive acts, false advertising, negligent misrepresentation and unjust enrichment. The firm said the suit seeks damages, disgorgement and a constructive trust over traceable treasury and wallet assets. Burwick Law alleges the project falsely presented "Marc AIndreessen" as the AI agent running the venture fund while humans made investment decisions, and says a September 2025 migration expanded supply from 1.1 billion to 11 billion tokens, giving holders six new tokens for each old one while routing 40% of newly created supply, about 4.4 billion tokens, to defendant-controlled entities. Walters rejected the characterization of the project as a scam, said he never sold his holdings, drew only a modest salary, and said he once held $25 million in tokens without dumping them. The token's collapse caps a steep reversal from the AI-agent boom that propelled ai16z, one of Solana's loudest trades in early 2025, to a multibillion-dollar valuation. CoinGecko data cited in the latest report showed ai16z at about $0.000277 on Wednesday, with a market capitalization near $305,000 and 24-hour volume of roughly $4,080, about 99.99% below its $2.47 all-time high on Jan. 1, 2025. ELIZAOS, the token ai16z holders migrated into, traded at about $0.000354, down 6.5% on the day, with a circulating market value of about $2.65 million across 7.48 billion tokens out of an 11 billion maximum supply.